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Created: 10 November 2017

Nov10

2017

Top Ten Reasons for Growing Demand of Accountants in GST Era

GST has brought a radical change in the way Corporate India pays taxes during the financial year. While implementing ‘One Nation, One Tax’ approach on July 1, 2017, the government has sent a clear message to the businesses that more transparency and openness in the business model must come with this biggest tax reform.

On one hand, GST has posed many challenges in front of Indian enterprises and on the other hand, it has opened the doors of opportunities for skilled business accountants. Yes, it’s true! An updated, tech-savvy, and experienced accountant can grab the opportunities offered by the GST regime.

Here are top ten reasons for increasing demand for expert business accountants in GST era:

1. Complexity - Though GST is an amalgamation of several taxes like central excise, customs duty, and the like, it is highly complex to understand especially for the persons who don’t have the commerce background. It is an origin-based tax that replaces other destination-based taxes, and therefore, it is a bit complex in nature. Skilled accountants can make it simple for the entrepreneurs and business persons.

2. Clarity missing - Ambiguous rules and regulations have made the GST more confusing. Anti-profiteering provisions and e-way bill are also having a lack of clarity. Such a lack leads to increasing requirement of expert accountants.

3. Compliance issues - Minimum 37 returns are necessary to be filled during one GST cycle. Input credit can be earned only after maintaining timely compliance while filing GST returns. It creates various compliance-related issues and companies bank on qualified accountants for the process.

4. Changed invoice - Companies have to upgrade their existing invoice format to GST through including GSTIN and place of origin. GST-based accounting statement is also difficult to make and understand. All these things ascertain the requirement of a talented business accountant in the corporate world.

5. More accounting work - While filing at least 37 returns in a year, it is necessary to maintain the accuracy of every account statement. More accounting work leads to the increased requirement of accountants.

6. IT system-related issues - Accounting software are not that much ready to handle all GST-based work. Many companies have also not updated their IT system to GST yet. In this scenario, it is obvious that businesses face IT system-related issues while calculating and filing GST.

7. Lack of preparedness - Business systems are not ready for GST as it is implemented in some hurry. Lack of preparedness can be subsided by appointing business accountants.

8. State, centre, and intra-state taxes - One more hurdle in the way of GST is its triple tax structure: CGST (Central GST), SGST (State GST), and IGST (Intra-state GST). It is difficult for the companies to calculate and manage everything.

9. Requires every detail - As GST is an origin-based tax, it is obvious that it requires every detail of the product and services ranging from manufacturing to utilizing. It makes GST more complex and

10. Lack of resources - Businesspersons do not find many resources to get the better understanding of GST concept. It also contributes to enhancing demand for accountants.

It is fair to mention that the GST era is going to boost demands of selected accountants who are willing to embrace this tax and to stay updated.

At Munimji, we help companies implement GST in their business either through guiding their accountants or providing expert accountants who are trained to manage GST with ease.